Where there are spillover (or external) benefits from having a particular product in a society, the government can make the quantity of the product approach the socially optimal level by doing the following except:
A) Subsiding the buyers of the product
B) Taxing the sellers of the product
C) Subsidizing the sellers of the product
D) Providing the product itself

Question

Quizplus · Accepted Answer

Taxing the sellers of the product would decrease the supply, moving the quantity further away from the socially optimal level rather than towards it.

Where There Are Spillover (Or External) Benefits from Having a Particular